Gold has traded between $1,080 (important support) and $1,098 so far today…as of 10:10 am Pacific, bullion is up $12 an ounce at $1,091 on a very negative day across global equity markets…Silver is up 8 cents at $13.90…Copper has declined 4 pennies to $1.96…Crude Oil has plunged $1.84 a barrel to $29.36…Baker Hughes reported this morning that the U.S. Oil rig count fell by just 1 rig in the latest week…the U.S. Dollar Index is off half a point to 98.64..
A slew of disappointing U.S. economic data was released to begin the trading session…this compounded the problem for the equity markets following the overnight sell-off in China and further weakness in Crude Oil…
The January Empire manufacturing was minus 19.4…the Producer Price Index fell 0.2% in December after rising 0.3% in November, while industrial production for December fell 0.4%…capacity utilization was 76.5%…30 minutes into trading, the consumer sentiment number came in and it was slightly better than expected at 93.3 (the 4th straight monthly rise) after a reading of 92.6 in December, but that didn’t offer enough encouragement to traders…
The Fed clearly continues to have a problem with inflation – or a lack thereof…inflation has been running below the Fed’s 2% target for more than 3-and-a-half years, despite the central bank’s repeated assertions that inflationary pressures will start to kick in…the compensation that bond investors demand for expected future inflation is now edging lower as Oil prices continue to tumble (they have further to go on the downside) while the deflationary impact of the greenback’s appreciation since the summer of 2014 is still working its way through the economy…
“Inflation expectations are a key factor and if they continue to decline, I would put increasing weight on that,” St. Louis Fed President James Bullard said yesterday in Memphis…doubts about inflation expectations “would tend to push off rate increases,” he said…
Yield movements in the Treasury inflation-protected securities, or TIPS, market indicate that compensation for inflation expected in 5 to 10 years has dropped to 1.56% annually, according to Barclays…that is down from 1.67% when the Fed raised short-term rates in December…moreover, it is down from 2.5% a couple of years ago…
Oil prices this week have fallen below $30 a barrel for the first time in more than a decade, and the Labor Department yesterday reported that prices for non-petroleum imports fell 3.7% from a year earlier in December, the largest annual drop since October 2009…again, deflationary forces are prevailing…
What President Obama delivered Tuesday, with respect to the economy (not to mention the troublesome geopolitical scenario on multiple fronts) more resembled a State of Denial Address…
In today’s Morning Musings…
1. The Dow falls below a key long-term uptrend line while China’s Shanghai has further to slide…
2. Equitas Resources (EQT, TSX-V) resumes trading, announcing it has acquired a Gold-producing project in Brazil…
3. Updated chart for the Venture on another wild day in the markets…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
It would appear/confirmed that the little rally in Dec for the venture was indeed a dead cat bounce. The markets are getting roasted.
Comment by Tony T — January 15, 2016 @ 12:21 pm
Has BMR talked to DBV lately?
Thanks
Comment by Blue beryl — January 15, 2016 @ 12:43 pm
K Hardy Korelin interview today
kereport.com/2016/01/15/equitas-resources-acquiring-producing-miner-brazil/
Comment by bob — January 15, 2016 @ 1:00 pm
CDNX close – 488.66 , ouch . Most indexes have now broken their August lows . If this sell off is anything like the one in 2000 or 2009 the next few months are going to be rough.
Comment by Les — January 15, 2016 @ 1:15 pm
DBV- Blue beryl good news before the end of the month !
Comment by Guy Delisle — January 15, 2016 @ 1:51 pm
Lets hope not les. I’m losing money even if the price of eqt stays the same just with the loonie dropping. ugh.
Comment by dave — January 15, 2016 @ 2:16 pm
Best description of the world economic situation from “Black Swan Capitol”
If I had to describe, in one sentence, why this ongoing theme of debt/deflation continues, I would say this:
Governments have not let the market clear.
Markets left to their own device do a good job of clearing…washing away the dead wood with its invisible hand. Governments’ attempt to save politically connected legacy assets through various means is what prolongs a recession/depression.
Comment by Les — January 15, 2016 @ 2:16 pm
look how the level 2 flipped on wrr. geesh,
Comment by dave — January 15, 2016 @ 2:17 pm
Hi Guy Delisle when do you expect DBV results? Thanks
Comment by ConcernedCitizen — January 15, 2016 @ 2:28 pm
Some of us, including me wanted GGI to rush the assays so they could get back on the property quicker, but not doing it was probably a godsend. The markets are a sea of red the past two weeks. The good thing is what goes down usually goes back up. This too will pass and we will see a rebound eventually as this time of the year is historically good in the markets, especially leading up to RRSP deadline.
All is quiet with GGI right now but the Grizzly will roar when a major discovery is announced. The geologist are excited by what they have encountered and the XRF analyzer don’t lie and was the key to their excitement. It should give us a clue as to what GGI is expecting when the assays are returned. Rumor was hole # 3 had to be re-assayed or possibly analyzed for other minerals.
Don’t forget the drill is turning at Rodadero again as well and we all know what they hit there on their first round. I am sure the GGI geologist have studied that property well since the first round and know where to place the drill bit, as their reputation is second to none when it comes to hit ratio.
Another GGI discovery could be the catalyst that puts a spark in the junior sector.
Comment by Dan1 — January 15, 2016 @ 3:09 pm
Man I really hope GGI is not a dud. It’s like my real last glimmer of hope in this resource sector. All of us GGI investors…let’s hope next week ( ya I know I just said “next week” ) is an awesome one. Not just for us but the whole district.
Comment by weatheritout — January 15, 2016 @ 3:46 pm
Let’s have that interview this weekend Jon….we need something to ponder over and prop us up.
Comment by weatheritout — January 15, 2016 @ 3:48 pm
DBV- ConcemedCitizen no later than the first week of February!
Comment by Guy Delisle — January 15, 2016 @ 4:39 pm
tony t – I had to copy your post. You are bang on. I live in Alberta. I didn’t vote for the NDP, probably never will but to fair they were handed a really crappy hand. The conservatives in Alberta deserved to get their butts kicked, should have happened before, they totally lost touch with the voters and spent way too much. I am no fan of the NDP but the criticism they get here far exceeds what they deserve. I think they were compared to the Greece government in one tirade. There will be no royalty review, they are not that stupid.
Jon u stated “The Saudis were smart when Oil was trading above $100 a barrel – they stuffed their money away, unlike Alberta of course which couldn’t spend it fast enough.”
Wasn’t Alberta run by a conservative government for 40 years? So really, the conservative’s are as much responsible for Alberta woes as the price of oil is. Alberta Ndp just got handed a really crappy hand after they won.
Comment by tony t — January 15, 2016 @ 2:02 pm
Comment by Danny — January 15, 2016 @ 4:47 pm
Weather permitting DBV should be back on site before month end.
Comment by Les — January 15, 2016 @ 4:58 pm
Good thing they have their 848 000$ financing close looking back at it.
Comment by Martin — January 15, 2016 @ 5:05 pm
Ladies, keep calm as now is no time to be selling. This SHALL PASS TOO!!
Just wait and see what GGI, DBV and WRR will do to help turn this brutal market around!!
Comment by Jeff — January 15, 2016 @ 5:33 pm
Thanks guy
Nice to know there is time to add
Cheers
Comment by Blue beryl — January 15, 2016 @ 5:37 pm
Dan,Rododero will have no effect on the stock.Nobody cares about a silver mine in Mexico.It’s just the way it is.Just like EQT,poor or mediocre results from Garland will not be overcome by some little gold mine in Brazil.
I was in contact with North American Nickel,who have a nickel discovery in Greenland and told them 3 years ago they needed to obtain a second play to keep the news coming in and drive the stock price.
They knew it and were looking around.I suggested the ONLY property that had the ability to possibly overwhelm even the play they were focused on in Greenland.They said they looked at it twice,balked and settled on a dinky base metals mine that nobody cared about,and don’t care about it today.The stock tanked.
I got in contact with EQT last summer and told them the same.They needed a second project,and there is only one out there that has the ability to grab the market’s attention.They said they looked at it and passed.
Now they settle on this dinky gold play that will never grab the market’s attention,and the stock is paying for it.
This brings me back to GGI.NOBODY cares about Rododero.Forget that ever moving the stock.Jmo.
Comment by jim niles — January 15, 2016 @ 6:21 pm
Dave – that room your renting in Ecuador, does it have running water and/or do you have to bring your own bed?? Just curious!!
Comment by Jeff — January 15, 2016 @ 7:12 pm
@tony t: Words of wisdom, i also live in Alberta, & we squandered our opportunity, provincial and municipal govt did NO planning for future, and upset everyone enough to get them punted out. The NDP cannot determine/affect world oil production. We are a price taker.
Comment by Barry_R — January 15, 2016 @ 7:54 pm
Beds, sheets, pillows, running water , cable, wi-fi, the works.
Comment by dave — January 15, 2016 @ 8:25 pm
It’s a 3 bedroom apartment, not a room. Going rates in Manta are $200 to $400 a month.
Comment by dave — January 15, 2016 @ 8:26 pm
DBV – It all depends if you’re in for the long run. Considering the shape of the current market, the chances of successfully profiting for a short in and out are extremely thin. DBV discovered a porphyry. Porphyries are low-grade but VERY large. Therefore open pit mines over porphyries have extended life span, over a few decades, which should cover a few market cycles, making it’s value less vulnerable to metal prices.
Farshad and his team are still exploring, and their goal is to find the epicenter of the system, which they still haven’t managed to do, though their drilling results keep getting better and better. They’re not trying to rush anything, or have the market speculate over things. They’re still trying to figure out the size of this giant. They’re currently in a very good position when you consider the big picture. Just don’t expect to make thousands over a few weeks, it won’t happen.
Patience is virtue.
Comment by Chromatix — January 16, 2016 @ 5:15 am
You may be correct Jim but if GGI can prove a valuable deposit at Rodadero they could sell it to a major and inject cash into the grizzly. Don’t underestimate the power of Assets. That is why GGI is not a one trick pony. It also reduces the dilution factor. GGI has done it before.
Comment by Dan1 — January 16, 2016 @ 7:00 am
Dave – ahhh a 3 bedroom apt. that’s amazing price!! How long are you planning to stay? I’m thinking of joining you!!
Comment by Jeff — January 16, 2016 @ 8:46 am
Dan,I agree.I’ve always said they could sell Rododero for cash.At this stage they don’t seem inclined to do that.What I am saying is that nobody will bid the stock up on news from Rododero,especially in this environment.
The results from Sheslay will be interesting to see,however the stock reacts.
With so little volume in the stock in its runup to .15,will there be a run in the stock once volume comes in,or will there be a major selloff just so people can get the heck away from this slow play and save what they can,as in the rest of the market?
Now even Walmart is closing 226 stores with thousands of layoffs.The gov’t should stop using the word Recession and call this what it is…a DEPRESSION.Thank God people can draw Unemployment and Welfare at least.That’s the only difference between now and 1929.
The markets are an equivalent of going to the casino now.We’re actually just throwing our money away by putting it in stocks.No sector is safe.
Comment by jim niles — January 16, 2016 @ 9:43 am
jim – When I read your post, especially the following, “Thank God people can draw Unemployment and Welfare at least.That’s the only difference between now and 1929” it really hit home how fear is setting in with some people. The market has a correction and people are now comparing this to 1929?? The papers do a great job of fear mongering. I am betting the price of oil doesn’t go to $20.00
Yes, we are having a correction and it could get worse but we have had these before and always recovered. The correction will do what others have done. That is transfer money from people who panic at the bottom into stronger hands. It will no doubt get worse for the most speculative plays, the companies with strong balance sheets will survive, the ones who need to raise cash are in trouble.
Comment by Danny — January 16, 2016 @ 10:32 am
Jim, it’s important to distinguish between what’s working (capturing interest) and not working at all in the current resource environment. The value of Rodadero, and other projects of its type in the market, is its high-grade at and near-surface – and it’s not just Silver but Gold. Any junior with a high-grade near-surface deposit and obvious potential to expand that with new discoveries has a major advantage in this market, and that’s proven out by valuations (among non-juniors as well). Rodadero represents an entire new mineral camp in central Sonora, which is why a few companies (one of them believed to be Yamana which has the Mercedes mine to the north), are watching it closely after visiting the project. Why would GGI even think of selling Rodadero for cash at this point when one deposit has already been found and there are at least 11 additional target areas over 45 sq. km? They can drill this cheaply with their company-owned rig and build out more value very quickly, exponentially vs. cost (that’s key). You might be surprised what they pull off here.
GGI could continue to drill Silver Eagle at the moment but I believe they would be better off, market-wise, going after one of the other targets to the east of the Silver Eagle-Reales high-grade corridor for the possibility of another near-surface discovery. The high-grade transitions from Silver-base metals to Gold-Silver-base metals to the east, over the ridge that separates the two areas. The junior market is starving for an important new discovery. GGI did very well with Rodadero in 2014 in a sloppy market then (in fact, the Venture tanked 40% in the last few months but GGI held up well because of Rodadero and even did a $1.25 million financing at 21 cents in that environment). So another discovery would, in my opinion, draw considerable interest because it’s high-grade, near-surface, and potentially relatively easy to extract. Plus it’s a safe and proven district, very mining-friendly.
As far as the Grizzly is concerned, the two worst possible scenarios would be a) They shot blanks on all the holes; or b) They hit a bunch of low-grade Cu-Au porphyry which the market just has no interest in at the moment. Neither has occurred, based on core descriptions and photos. They need to demonstrate something different in the district and that means a new discovery with significantly higher metal value per tonne. That’s critical – that’s how they will be judged, by investors and us. The geological processes are there for such a discovery, and the core strongly suggests they have it.
Comment by Jon - BMR — January 16, 2016 @ 10:56 am
Just reading over some earlier interview clips. When you read this you really have to think that assays will be positive.
Regoci On The Hole 3 & Hole 4 Step-Outs
“A key point, the really exciting and intriguing picture here, is that on hole #4, a 600-meter step-out to the west-southwest of hole #3, we hit another thick intersection of the same mineralized structure (our emphasis) we drilled into for more than 200 m in the previous hole. Three widely-spaced holes, #4, #3 and #1, have now bottomed in this structure over a strike length approaching 1 km. In addition, above that structure we’ve seen extensive quartz veining along with finely disseminated chalcopyrite and impressive alteration. Right off the bat, this tells us that we could be dealing here with a potentially very large new system which may have some unique Kaketsa-produced aspects to it in this prolific district.”
Regoci On The Dark Pyrite-Magnetite Structure
“We do have the benefit of an XRF on site, another reason for our encouragement. We obviously could have drilled deeper, well beyond 300 m, to see how far this dark, mafic, pyrite-magnetite unit extends and what also might be on the other side of it. Those deeper holes can certainly come later. Our priority in this first-ever drilling is to systematically test a series of geophysical and geochemical anomalies that extend over a broad area trending southwestward along the margin of Kaketsa. That pluton, of course, is believed to be the mineralization source, the ‘heat engine’ for what we’re seeing at Grizzly Central. The system is trending toward Kaketsa.”
Regoci On What’s Next
“As stated in Friday’s news, for maximum flexibility over the next few months, we have fully winterized our camp in anticipation of a possible very important new district discovery. The drill program continues and we’ll be updating the market again at the appropriate time as we learn more, including assay results.”
Comment by weatheritout — January 16, 2016 @ 1:48 pm
I really want to see what is in that dark mafic unit. I think our wait is almost over.
Comment by weatheritout — January 16, 2016 @ 1:50 pm
That is true,Danny.The market always goes back up…at some point.2016 could end up surprising us at some stage.But,when you see Walmart,which is the cheapest of the cheap and get 70% of their products from China,closing 226 stores…not a good sign.
Comment by jim niles — January 16, 2016 @ 1:53 pm
Good points,Jon.We’ll see how it works out.Hey,I’m sure everyone is hoping GGI hits the jackpot so we can all jump on the bandwagon.
The market is in need of a winner.
Comment by jim niles — January 16, 2016 @ 1:55 pm
Jeff – Feb. 2 to the 27th.
Comment by dave — January 16, 2016 @ 6:51 pm
6 Canadians slaughtered (at least 22 others killed) in an Islamist (al Qaeda) terrorist attack in Burkina Faso that the Canadian Prime Minister has just referred to as “acts of violence”.
An act of violence is what you might see at a hockey game. This was a full-fledged Islamist terrorist attack, taking the lives of 6 Canadians from Quebec and citizens of 17 other countries.
“Canada strongly condemns the deadly terrorist attacks that took place in Ouagadougou, Burkina Faso. On behalf of all Canadians, we offer our deepest condolences to the families, friends and colleagues of all those killed and a speedy recovery to all those injured. We are deeply saddened by these senseless acts of violence on innocent civilians. We have offered assistance to the Burkinabé authorities in their investigation of this terrible crime.” (Statement from Justin Trudeau)
Nothing to worry about, though. According to Secretary of State John Kerry, we can all take comfort that “today marks the first day of a safer world.”
Iran can now immediately recoup roughly $100 billion in frozen assets because, according to Kerry, “Iran has honored its commitment to alter, in fact dismantle, much of its nuclear operation. All of Iran’s paths toward a nuclear weapon have been stopped. Today marks the first day of a safer world.”
Kind of like that May 1, 2003, Mission Accomplished speech. How lucky we are to be protected by such wise leaders.
Comment by Jon - BMR — January 16, 2016 @ 7:50 pm
GGI – I’m tired of reading, anticipating, thinking, fearing etc of what’s going to happen. I’m overdone and ready for results now.
Comment by George — January 16, 2016 @ 8:43 pm
Me, too, George. I’m sleeping well with visions of 100 million tonnes right off the bat. Some high-grade and some really cool stuff.
Comment by Jon - BMR — January 16, 2016 @ 8:49 pm
I’m holding strong Jon, holding strong. Thinks are looking and feeling good.
Comment by George — January 16, 2016 @ 9:13 pm
How did you come with 100M tonne Jon?
Comment by Martin — January 16, 2016 @ 9:14 pm
Jon – that 100M is a very interesting number!! I’m also wondering how you came up with that number!! Care to share your source??
Thanks!;
Comment by Jeff — January 16, 2016 @ 10:05 pm
Martin/Jeff, back-of-the-envelope calculations, unofficial of course, but backed up by an independent geo we reviewed this with. Based on strike length, and (using reasonable numbers) estimated depth, width and specific gravity of the “dark” unit that was intercepted in holes 1, 3 and 4 (doesn’t include mystery hole #5) to the east. Widely-spaced holes, don’t forget. You can get some crazy numbers if you extrapolate the size of this based on geophysics, if that’s a clue as to the nature of this emerging deposit. Of course we need to know what’s in the dark unit and the value of it determined by grades. 100M x 0 = nothing, obviously. But the evidence and my gut tell me that number isn’t “O”.
Comment by Jon - BMR — January 16, 2016 @ 11:07 pm
George, I hear you. I am over done as well. What is taking so long? The following was from the Dec 10 news release. It is now Jan 17th.
“Assay results of initial core samples submitted to Bureau Veritas (formerly AcmeLabs) for the first three drill holes are expected shortly and will be reported as soon as they are received, reviewed and interpreted.”
Comment by Danny — January 17, 2016 @ 9:33 am
Danny, they hit something that needs further lab testing over and above the normal fire assay. My guess is that we will hear something this week.
Comment by Tom UK — January 17, 2016 @ 8:36 pm
Tom UK – Please don’t “guess”. We have been listening to guessing and buying recommendations…..
Comment by George — January 18, 2016 @ 5:25 am
George, if you don’t like ”guessing” you should not be in the game of investing in junior exploration companies. Have you anything ”definite” you can share with us?
Comment by Tom UK — January 18, 2016 @ 7:42 am
Tom UK – I do not have anything definite I can share unfortunately. People have been guessing news would be out “this week” for 3 weeks now. There is no basis to assume that we will hear something this week other than how long its been since they have said they are are anticipating results shortly. I wish I has something concrete to add.
Comment by George — January 18, 2016 @ 8:32 am
George, I spoke with the IR company 2 weeks ago. Prior to today,I have not made any comments that news will be out ”this week” My comments are based on something more than ”guesswork”.
Comment by Tom UK — January 18, 2016 @ 8:44 am
UK Tom ” My comments are based on something more than ”guesswork”. Care to explain that statement? Also My guess is that we will hear something this week. Guessing and if you don,t have anything definite then zip it!
Comment by Frank — January 18, 2016 @ 9:05 am
Obviously some frustration setting in on this board, ugly markets and lack of news is getting people down. Hopefully the news is good with GGI when it finally comes out.
Comment by Danny — January 18, 2016 @ 9:40 am
Timeline wise, Danny, there’s zero reason for any impatience considering that when DBV started their drilling (phase 2) in mid-October 2013, they didn’t report their discovery until about Jan. 20 as the Cambridge Show was underway…we all know that GGI, which also started drilling in mid-October, is dealing with something quite unique in terms of what they have hit at Grizzly Central, which also led to more procedures being carried out at the lab…now why should anybody be frustrated with that?…we’ll hear from them as soon as they have everything and so far, they’re very much within the timeframe of reporting that occurred in early 2014 when all heck broke loose in the district on the Hat discovery…if I saw a problem here, I’d say so…I don’t see a problem other than investors needing a break from their computer screens…
Comment by Jon - BMR — January 18, 2016 @ 9:58 am
GGI – Of course we are frustrated as I now need 70 percent gain to get back to 0.17 from current level which is 0.10 – 0.105.
Comment by George — January 18, 2016 @ 10:45 am
Jon, I base my impatience only on the time frames given by GGI in their Dec release, they need to do a better job managing expectations. I don’t see why the time taken by DBV has anything to do with it.
You are right though, people do need a break from their screens. I am certainly guilty of that.
Comment by Danny — January 18, 2016 @ 11:10 am
It would be nice to take a break from the screen, but worried to come back to even more losses
Comment by 02charoc — January 18, 2016 @ 12:08 pm
Frank, no need to act a SH poster here. As I stated clearly in my post – I have spoken to IR company 2 weeks ago. I assume you have access to a phone?
Comment by Tom UK — January 18, 2016 @ 9:00 pm